Many organizations, businesses and individuals are concerned about the difficulty of accessing foreign currency credit in the coming time.

Circular 24/2015 of the State Bank stipulates that from March 31, 2016, commercial banks will stop lending in foreign currencies and switch to buying and selling pure US dollars (USD). This information has made many organizations, businesses and individuals worried about the difficulty of accessing foreign currency credit in the near future. The reporter interviewed Mr. Bui Quoc Dung, Director of the Monetary Policy Department - State Bank about this issue.

Mr. Bui Quoc Dung, Director of Monetary Policy Department, State Bank.

Reporter: Sir, currently businesses have different thoughts about Circular 24 of the State Bank, saying that from March 31, 2016, the State Bank will prohibit foreign currency loans from commercial banks. How do you explain this?

Mr. Bui Quoc Dung: In fact, customers who need foreign currency can continue to borrow foreign currency as previously regulated. In Circular 24, with 3 groups of subjects who need foreign currency capital, the first is short-term, medium-term and long-term loans to pay for imported goods and services abroad, the second is loans for foreign direct investment projects with important national projects and works, the third is loans for key enterprises importing petroleum, they can continue to borrow normally, even the group of key enterprises importing petroleum in Circular 43 only stipulates until December 31, 2015, but in Circular 24, this group of subjects is no longer limited in time, that is, it is expanded.

In Circular 24, the group of subjects borrowing foreign currency but to serve the domestic capital needs to implement plans for production and business of export goods, the deadline is only until March 31, 2016. This group of subjects does not have a need for foreign currency but borrows foreign currency to then sell VND, the goal is to enjoy low interest rates from borrowing foreign currency only. Therefore, according to Circular 24, there will be no impact on the subjects who need to use foreign currency. Compared to Circular 43, the deadline for this group of subjects is until December 31, 2015, but in Circular 24, it is extended to March 31, 2016.

Reporter: Why did the State Bank narrow the fourth group of subjects, which are enterprises with short-term domestic capital needs, to produce and trade export goods, sir?

Mr. Bui Quoc Dung: The subjects do not need to borrow foreign currency, but only borrow foreign currency to meet domestic capital needs, the goal is that they want to enjoy low interest rates from borrowing foreign currency, not needing foreign currency. Previously, there were regulations on lending foreign currency because in the previous period when the economy was still growing slowly, market demand was low, so to support businesses, the State Bank regulated that this group of subjects could borrow foreign currency, thereby they would enjoy low interest rates on foreign currency loans, then they would sell them back to the lending bank to get VND to meet domestic capital needs.

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However, at the present stage, the economy is growing well. Credit demand is growing again, foreign currency demand is also increasing, so in the anti-dollarization roadmap, it is necessary to gradually shift from borrowing to buying and selling relationships. Therefore, the target group needs to be narrowed down, only serving the right target group in need of foreign currency. Secondly, this group of target groups currently does not benefit from borrowing as much as in the previous stage because to enjoy the interest rate difference, the interest rate difference itself must be much larger than the expectation of exchange rate adjustment. However, in the context of economic recovery, the demand for foreign currency increases, the expectation of exchange rate adjustment must also be larger. Therefore, the benefit for businesses to enjoy the interest rate difference is no longer much. Statistics from the State Bank show that this group of target groups is currently small.

Reporter: Sir, a question that the public is currently interested in is, after March 31, 2016, will the banking sector meet the needs of businesses and people who need to borrow foreign currency?

Mr. Bui Quoc Dung: According to regulations, all subjects with foreign currency needs can still borrow normally. Because the subjects who do not continue to borrow until March 31, 2016 are the group of subjects borrowing foreign currency to meet domestic needs, not to borrow for importing goods, but they borrow foreign currency and then sell it to banks to use for domestic capital needs, thereby they enjoy low interest rates on foreign currency loans. The group of short-, medium- and long-term loans to serve foreign payments for imported goods and services serving the production of exported goods remains the same as the old Circular and there is no time limit for this group of subjects./.

PV: Thank you!./.

According to VOV